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White Paper: The True Cost of Losing Talent

Our recent study on the strategies utilised in order to attract the top talent across Europe raised a further question that our customers have asked us to investigate. 75% of all major HR professionals recently commented in a CIPD survey that once they had attracted talent they struggled to keep it in their organisation. The cost of losing talent isn’t just the fee you pay for locating a replacement. Employers do not always realise the hidden costs behind losing talent.

A study carried out by the American Centre of Progress examined 30 case studies from 11 research papers produced between 1992 & 2007. They discovered that on average the cost of replacing a member of your organisation earning circa $50,000 a year ($4200 a month) was the equivalent of 20% - $10,000. Lower level talent earning the equivalent of $2500 a month cost 16% of their first year cost to replace.

Furthermore the cost of replacing a senior executive or project manager was on average 213% of their first year cost.

Confusion reigns when you research that other studies estimate the cost of losing talented individuals range from 30% to 400%!

The only thing that is abundantly clear is that losing talent is a costly business
Recently the global recruitment market has evolved with Technology, Telecoms & Engineering converging enabling the Internet of Things, this will make retaining top talent more difficult. To illustrate this Cisco predicts that 220,000 new engineers will be needed globally every year for the next decade to keep up with the technological surge of the IoT.

Tangent has understood this growing trend and has structured our services around not just locating talent but retaining it also.

Dedicated Talent Retention Tool for our customers
In conjunction with our partners in Cambridge Tangent have developed the first ever retention tool aimed at tracking the engagement of candidates placed with customers structured around Maslows hierarchy of needs.

This software is able to track the happiness and engagement of all candidates we place for a period of 12 months returning graphical based trend analysis in order to identify potential threats & opportunities.

By tracking employee engagement on behalf of our customers we ensure the talent we recruit for them stays with them.

“Concierge team” & Local Support
We have a 24 / 7 365 day a year support team in place to work with all of our candidates assisting them with everything they need to relocate including accommodation, flights, visas, schooling etc, whilst also providing the pastoral care contractors regularly require.

The nature of contracting has historically meant that as an individual you would have no allegiance to your customer or agency acting as a mercenary focused solely on the money.
Recent surveys indicate that the global contractor community has evolved with the end clients expecting longer term assignments and demanding a certain level of care from their agency in order for them to commit long term.

The Tangent concierge team is unique in our industry. It was established to focus solely on the happiness & well being of our contractor community providing all of the support and care expected by a modern day contractor allowing them to commit long term.

Focused Company Information
Our most successful recruiting campaigns have always included a specific “Company Introduction Pack” which is sent to every Interviewee. We are determined to engage each candidate’s interest early on in the recruitment process. We have found that the more excited about an opportunity a contractor is the more determined he or she will be to join that organisation.

Furthermore once successfully hired we will send a tailored welcome pack designed in conjunction with our customer. The purpose of this pack is to help the contractor to assimilate to their new environment & company ethos quickly & comfortably. These initiatives have helped improve our conversion rates by 23.7%.